Overview of the office market in Vienna
Executive Summary
Energy efficiency, sustainability and quality optimisation are currently the main factors when searching for a location. The ESG requirements give this development an additional boost.
Although around 90,700 sqm of new office space was created this year, a significantly higher amount than in the previous year, the pace remains subdued and is exacerbating the mismatch be- tween supply and demand for attractive first-time lets. The vacan- cy rate shows a continuous downward trend and is currently 3.4%. Creation of new office space & vacancy rate
Letting performance The previous year showed strong momen- tum and a surprisingly positive result of around 180,000 sqm of let office space. Due to the mismatch between supply and demand, this year a slight reduction in letting performance is expected com- pared to the previous period.
Rising rental prices Rental prices are rising due to the mis- match between supply and demand in prime locations, higher construction costs and persistent inflation. The prime rent is EUR 28.00/sqm.
The investment market continues to suffer from the rise in interest rates, although there has been a noticeable decline in interest rates in the long-term segment since summer 2023 and the interest rate situation is currently inverse. Against this backdrop, there are signs of a rebound, with more and more investors beginning to explore the market, meaning that EHL remains confident about investment prospects in 2024. Investment
04
Office Market Report
Powered by FlippingBook